Introduction to Insurance

Last updated over 1 year ago
10 questions
Required
1

Match the vocabulary words with their definitions

Draggable itemCorresponding Item
Limit
Asking the insurance company for money for your loss/damage/bill
Claim
The specific insurance plan you chose
Policy
How much you pay before insurance pays the rest
Premium
The maximum amount insurance will cover
Deductible
The price of your insurance policy
Required
1

How does an insurance company determine your premium?

Required
1

Typically, as the premium increases, the deductible _______________.

Required
1

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part A: How much will you pay a year in health insurance?

Required
1

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part B: Unfortunately you have a sore throat and have to go into the doctor. The doctor bill turns out to be $250 after a few tests were run. How much will you have to pay before insurance kicks in?

Required
1

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part C: Unfortunately you have a sore throat and have to go into the doctor. The doctor bill turns out to be $250 after a few tests were run. How much will insurance pay?

1

How much is your yearly health insurance if your monthly premium is $120?

1

Health insurance premiums are known to increase by 50% for smokers(tobacco and nicotine). Suppose someone's monthly health insurance is $120. The insurance company finds out you smoke(https://healthcareinsider.com/health-insurance-smokers-42747) and therefore raises your rate by 50%. How much is your new health insurance premium?

HINT! Determine 50% by $120 * 0.50
Then, add that answer to $120.

1

How much is your yearly health insurance if you pay 180 a month?

Required
1

How much more do you pay a year because of the premium increase?
(Hint: You will use the premium amounts you calculated in #7 and #9)